Make sure that you each have umbrella insurance of at least $2mm.Recognize up front that partnerships often result in frustration and remorse due to inequities in work performed (that is not property recognized in the operating agreement), differences in opinion on how to grow the business (take distributions versus plow all profits back in), etc.

The property looks in pretty good shape and using conservative estimates on rent/expenses is should give around 11%+ cash on cash return and according to Zillow's Zestimate would provide an additional $20k in equity (I'm not too hopeful for that as Zillow seems pretty unreliable for pricing).

So, I have $80,000 in equity and the bank is considering loaning me up to 70% LTV. 5.

Once I figure out total ROI, when it adds in equity accumulation then it'd really push that % up.

It has been about 3 years now and we've gained about $5,000 in equity through payments to principal.

I've always been interested in investments, I got my start in equities, but grew interested in real estate after working for a company with a large portfolio of commercial mortgages.

Compare your cash outlay of a down-payment and closing costs versus the down-payment, hard money fees, interest and closing costs of fixing up a distressed property.You may end up with more built-in equity and a slightly higher return by fixing up a property yourself (maybe), but your risks and time invested go up too.Continued success!

I'd also like at least 20k in equity, but I don't care as much on that.

That's what you expected to make in the first place and now you not only get it tax free but you also get to keep a cash flowing property with 36k in equity.

My personal home has maybe 30k in equity.. my rental has 120k in equity...